E5-20 Making closing entries [15–20 min]
Howe Audio Equipment’s accounting records carried the following selected accounts
at April 30, 2012:
Inventory | $ 5,900 | Selling expense | $ 7,300 |
Interest revenue | 40 | Sales revenue | 38,400 |
Accounts payable | 1,000 | Interest expense | 30 |
Cost of goods sold | 26,900 | Accounts receivable | 600 |
Other expense | 1,700 | General and administrative expense | 900 |
Howe, drawing | 300 | Howe, capital | 8,730 |
Requirements
1. Journalize the closing entries at April 30, 2012.
2. Set up T-accounts for Income summary and Howe, capital. Post the closing
entries to the T-accounts and calculate their ending balances.

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